Narrative Economics: How Stories Shape Markets and Movements
Economics is often described as the study of numbers—prices, profits, productivity. Yet beneath the graphs and equations lies something more elusive: stories. Narratives shape how we interpret data, how we act in markets, and how we move as societies. Nobel laureate Robert Shiller coined the term narrative economics to capture this truth: that stories, not just statistics, drive economic behavior. In a world where information spreads instantly, narratives are not just background noise—they are the currents that move markets and the sparks that ignite movements. The Power of Story in Economics Stories are how humans make sense of complexity. Numbers may tell us what is happening, but narratives tell us why it matters. A rising stock price becomes a story of innovation. A falling currency becomes a story of decline. A new technology becomes a story of disruption. These stories are contagious. They spread through media, boardrooms, and social networks. They shape expectations...